Clearing bets

ABSTRACT

This disclosure provides a pari-mutuel wagering system that includes a first wagering facility communicably coupled with a network and operable to receive a bet on a wagering event hosted by a second wagering facility. The first wagering facility is further operable to transmit the bet to the second wagering facility via the network. The system further includes a clearinghouse communicably coupled with the network and operable to capture audit information associated with the bet from the network.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.12/540,432 (now U.S. Pat. No. 8,177,635), filed Aug. 13, 2009 by HowardW. Lutnick and Joseph M. Asher, which is a continuation of U.S. patentapplication Ser. No. 10/798,115 (now U.S. Pat. No. 7,582,013), filedMar. 10, 2004 by Howard W. Lutnick and Joseph M. Asher, each of which ishereby incorporated by reference herein in its entirety.

TECHNICAL FIELD OF THE INVENTION

This disclosure relates generally to the field of gaming and, morespecifically, to a system and method for high-speed pari-mutuel wageringusing a clearinghouse.

BACKGROUND OF THE INVENTION

Wagering on events such as horse races or jai alia, for example, is alarge and growing industry in many parts of the world. Typical horseracing bets allow bettors to bet on a single horse or on several horsesin a particular race or series of races. For instance, a bettor can beton a particular horse to finish first (win), finish in the top two(place), or finish in the top three (show). A bettor may also makevarious combination bets with multiple horses, such as an exacta bet(covering the top two horses in order) or a trifecta bet (covering thetop three horses in order). In addition, a bettor may bet on a series ofraces such as, for example, the daily double (winners of two consecutiveraces), the pick-three (winners of three consecutive races), and thepick-six (winners of six consecutive races).

In a pari-mutuel (“among ourselves”) wagering system, all bets regardinga particular event are aggregated, a percentage (or “take-out”) is takenby each facility at which the respective bet is made, and the remainderis distributed among the winning bettors. In other words, typicalpari-mutuel betting systems, occasionally termed “totalisator” or “tote”systems, have bettors wagering against other bettors rather than againstthe house. This betting pool often includes bets made from a number ofwagering facilities. Typically, bets sent from a non-host facility tothe hosting facility experience delays in both transmission (such asthrough batch processing) and processing, which leads to delays in oddscalculations from the host facility. These delays further allow forsituations where bets are received, and odds calculated, aftercommencement of the event on which the bets are placed. Also, it isoften difficult to track or audit bets. These situations createpotential for fraudulent betting practices and a general unease by thebetting public. Moreover, conventional pari-mutuel systems provide nosystematic way for facilities to settle accounts among various wageringfacilities after the event is completed.

SUMMARY OF THE INVENTION

In one embodiment, this disclosure provides a pari-mutuel wageringsystem that includes a first wagering facility communicably coupled witha network and operable to receive a bet on a wagering event hosted by asecond wagering facility. The first wagering facility is furtheroperable to transmit the bet to the second wagering facility via thenetwork. The system further includes a clearinghouse communicablycoupled with the network and operable to capture audit informationassociated with the bet from the network.

In another embodiment, the disclosure provides a wagering systemassociated with a first wagering facility, the system communicablycoupled with a network and including a memory operable to store bettingodds on a plurality of wagering events hosted by the first wageringfacility. The system further includes a processor coupled to the memoryand operable to receive a first bet on a particular event via thenetwork, the particular event comprising at least one of the wageringevents hosted by the first wagering facility. If a second bet isreceived within a predetermined period of time after the first bet isreceived, then the processor recalculates the betting odds on theparticular event based upon both of the first bet and the second bet. Ifa second bet is not received within a predetermined period of time afterthe first bet is received, then the processor recalculates the bettingodds on the particular event based upon the first bet.

In yet another embodiment, the disclosure provides a method forconducting wagering. The method includes receiving at a first wageringfacility a plurality of bets on a wagering event that is hosted by asecond wagering facility, wherein the first wagering facility is coupledto the second wagering facility using a network. Each of the pluralityof bets are transmitted individually to the second wagering facilityusing the network.

The invention has several important advantages. Various embodiments ofthe invention may have none, some, or all of these advantages. Oneadvantage of the present invention is that it provides a high-speedwagering network capable of processing a large number of bettingtransactions on an individual, real-time basis. Another advantage of thepresent invention is that it may provide confidence to bettors that betswill not be placed after the event's commencement. Further, the presentinvention may automatically determine real-time betting odds, andfacilitate the real-time thereof, as individual bets are occurring forevents. Moreover, the present invention may allow for the capturing ofaudit information involving the individual bets. Yet another possibleadvantage of the present invention is that accounts among a plurality ofwagering facilities may be quickly and systematically settled upon apredetermined schedule. The present invention may also provide increasedsecurity and redundant clear channel connections for a nationwidepari-mutuel wagering network. Other technical advantages of the presentinvention will be readily apparent to one skilled in the art.

BRIEF DESCRIPTION OF THE DRAWINGS

For a more complete understanding of the present disclosure and itsadvantages, reference is now made to the following descriptions, takenin conjunction with the accompanying drawings, in which:

FIG. 1 illustrates an example pari-mutuel wagering system in accordancewith one embodiment of the present disclosure;

FIG. 2 is an example view of an audit log stored by a clearinghouse inthe pari-mutuel system of FIG. 1;

FIG. 3 illustrates an exemplary method for communicating bets betweenwagering facilities via the pari-mutuel system in accordance with oneembodiment of the present invention;

FIG. 4 illustrates an exemplary method for monitoring bets betweenwagering facilities with access to the pari-mutuel system in accordancewith one embodiment of the present invention; and

FIG. 5 illustrates an exemplary method for determining settlementsbetween wagering facilities with access to the pari-mutuel system inaccordance with one embodiment of the present invention.

DETAILED DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram illustrating a pari-mutuel system 100 forhigh-speed communications between wagering facilities 102 or otherbetting or tote locations. Generally, pari-mutuel system 100 is anysystem that facilitates high-speed communications between a plurality ofwagering facilities 102 to allow for individual bet 150 processing,real-time betting and updates, and automatic settlement processing. Morespecifically, pari-mutuel system 100 includes a plurality of wageringfacilities 102 interconnected through hubs 106 and a network 108. At ahigh level, pari-mutuel system 100 is a system that allows any number ofwagering facilities 102 to electronically participate in betting on awagering event occurring at another wagering facility 102. For example,pari-mutuel system 100 may be a wagering system providing inter-totecommunications. But, pari-mutuel system 100 may be an international,nationwide, regional, or local system without departing from the scopeof this disclosure. In short, pari-mutuel system 100 is a high-speedsystem that allows real-time transmission of wagering information viabets 150 between wagering facilities 102 using hubs 106 and the advancednetwork 108.

Typically, bets 150 on wagering events occurring at any one of thewagering facilities 102 are communicated across network 108. The eventsmay include horse racing, dog racing, or any other event that may be thesubject of pari-mutuel wagering. Accordingly, bets 150 may be anyappropriate pari-mutuel wager on the particular event such as, forexample, bets for any suitable dollar amount and others. Bets 150 may beinitially performed orally, in writing, electronically, or using anyother wagering technique so long as a first wagering facility 102 maycommunicate an electronic form of bet 150 to a second wagering facility102.

Wagering facility 102 is any location that hosts wagering events and/orallows bettors to wager on wagering events, even those at otherfacilities 102. For example, wagering facilities 102 may include horsetracks, dog tracks, off-track betting parlors, internet websites, or anyother place where a wager may be transmitted to network 108. Typically,the wagering facility 102 that is hosting a particular wagering eventdetermines the betting odds for various participants in the event. Basedon these odds, non-hosting wagering facilities 102 (also referred to assimulcast facilities 102) accept bets 150 and, upon receipt, nearlyimmediately communicate each bet 150 to the host wagering facility 102,thereby affecting the odds in real-time. A simulcast facility 102 maytransmit bets 150 to a host facility 102. This allows the host wageringfacility 102 to recalculate the odds without delay. These recalculatedodds may then be communicated to the betting public at the host facility102 or at any of the other facilities 102 substantially in real-time.Moreover, this real-time individual transmission of bets 150 allows hostwagering facility 102 to ensure that bets 150 are not placed after theevent has commenced.

Each wagering facility 102 may include or be associated with a computer,such as one similar to server 110 (described in more detail below) tofacilitate the transmission of bets 150 and real-time calculation ofodds based on bets 150. Of course, the computer at facility 102 mayexecute different software or processes or store and process differentdata (such as odds on wagering events and bets 150) from server 110without departing from the scope of this disclosure. The presentdisclosure contemplates computers other than general purpose computersas well as computers without conventional operating systems. As used inthis document, the term “computer” is intended to encompass a personalcomputer, workstation, network computer, or any other suitableprocessing device. Computer server 110 may be adapted to execute anyoperating system including UNIX, Windows, Linux, or any other suitableoperating system The computer may be located on-site or remote.Moreover, “computer” and “facility 102” may be used interchangeably asappropriate.

In certain embodiments, wagering facility 102 is communicably coupledwith network 108 through one hub 106. Accordingly, each facility 102, orthe associated computer, may also include one or more interfaces forcommunicating with other computer systems, such as other wageringfacilities 102, hub 106, other off-track betting locations 112 notdirectly connected to hub 106, or any other suitable component ofpari-mutuel system 100. The interface may comprise logic encoded insoftware and/or hardware in a suitable combination and operable tocommunicate with network 108 via connection 114. More specifically, theinterface may comprise software supporting one or more communicationprotocols associated with network 108 and hub 106 or hardware operableto communicate physical signals.

Wagering facility 102 includes one or more betting terminals 103. Asused herein, betting terminal 103 is any window, slot, sign-in sheet,card-reader, auctioning terminal, or device operable to receive bets 150from one or more bettors. As used in this disclosure, betting terminal103 may further encompass a personal computer, touch screen terminal,workstation, network computer, kiosk, wireless data port, cell phone,personal data assistant (PDA), one or more processors within these orother devices, or any other suitable processing device. For example,betting terminal 103 may comprise a computer that includes an inputdevice, such as a keypad, touch screen, mouse, or other device that canaccept information, and an output device that conveys informationassociated with the operation of system 100, including digital data andvisual information. Both the input device and output device may includefixed or removable storage media such as a magnetic computer disk,CD-ROM, or other suitable media to both receive input from and provideoutput to users of terminals 103 through the display. It will beunderstood that there may be any number of terminals 103 located in orcommunicably coupled to each wagering facility 102. Further, “bettingterminal 103” and “bettor” may be used interchangeably as appropriatewithout departing from the scope of this disclosure. But this disclosurecontemplates that many bettors may use one terminal 103 to communicatebets 150 on the same wagering event.

Hub 106 is generally any aggregation point or other location thatfacilitates various simulcast or real-time communications betweenfacilities 102. Hub 106 may comprise a data center, a processingfacility, a networking point, an administration office, or any othersite operable to provide links between network 108 and at least a subsetof facilities 102. For example, system 100 may include a plurality ofhubs 106, with each facility 102 being primarily associated with one ofthe plurality of hubs 106. In one embodiment, hub 106 may be co-locatedwith one of wagering facilities 102. Accordingly, hub 106 may includeany number of network devices such as, for example, routers, bridges,hubs, switches, servers, gateway, IP telephones, access control devices,and any other suitable network devices. Moreover, each hub 106 iscommunicably coupled to network 108 via one or more internodal trunks104. Internodal trunks 104 may comprise any wireless or wireline link(for example a T-1 line) using any appropriate protocol. Trunks 104 mayprovide redundancy to help ensure that communications flow quickly andseamlessly. Further, hub 106 may handle tasks such as routing, protocolconversions, security, encryption/decryption, and other suitablefunctions and may also use any suitable handshakes, logins, and/or otherappropriate hardware and/or software protocols so long as hub 106remains operable to facilitate communication of bets from a firstwagering facility 102 to a second wagering facility 102. Therefore, hub106 provides a high-speed, reliable link between a plurality of wageringfacilities 102 and network 108.

Network 108 facilitates wireless or wireline communication between theplurality of wagering facilities 102 and/or hubs 106. Indeed, whileillustrated as residing between hubs 106, network 108 may be furtherlocated between hub 106 and the one or more associated wageringfacilities 102 without departing from the scope of the disclosure. Also,while not illustrated, network 108 may further include hubs 106. Inother words, network 108 encompasses any network, networks, orsub-network operable to facilitate communications between wageringfacilities 102 and clearinghouse 106. Network 108 may utilize diversecarriers and include perimeters secured with a combination of accesslists and IPSec tunnels without departing from the scope of thedisclosure. Also, network 108 may communicate, for example, InternetProtocol (IP) packets, Frame Relay frames, Asynchronous Transfer Mode(ATM) cells, voice, video, data, and other suitable information betweennetwork addresses. Network 108 may include one or more local areanetworks (LANs), radio access networks (RANs), metropolitan areanetworks (MANs), wide area networks (WANs), all or a portion of theglobal computer network known as the Internet, and/or any othercommunication system or systems at one or more locations.

Returning to hubs 106, each hub 106 may also be a clearinghouse thatautomatically monitors and audits all bets 150 being transmitted acrossnetwork 108 and determines the settlement of accounts between wageringfacilities 102. Clearinghouse 106 may capture audit information on bets150 by monitoring network traffic, receiving copies of bets 150 from theappropriate wagering facility 102, receiving audit information fromwagering facilities 102 or hubs 106, or through any other appropriatetechnique. Clearinghouse 106 may also electronically settle accountsbetween wagering facilities using results from the relevant wageringevents, the captured audit information associated with the events, andcontract parameters in place among facilities 102. For example,clearinghouse 106 may include a central server 110 that is operable tostore various contract parameters and audit information andautomatically determine settlement of accounts between facilities 102based on this stored information.

Server 110 comprises any local or remote computer operable to audit andprocess bets 150 and that is communicably coupled to network 108. Forexample, server 110 may be a general-purpose personal computer (PC), aMacintosh, a workstation, a Unix-based computer, a server computer, orany other suitable device. FIG. 1 provides merely one example ofcomputers that may be used with the disclosure. For example, althoughFIG. 1 illustrates one server 110 that may be used with the disclosure,pari-mutuel system 100 can be implemented using computers other thanservers, as well as a server pool. According to one embodiment, server110 may be a remote web server. In the illustrated embodiment, server110 is operable to retrieve and store audit information in memory 120and generate settlements based on processed bets 150.

Memory 120 may include any memory or database module and may take theform of volatile or non-volatile memory including, without limitation,magnetic media, optical media, random access memory (RAM), read-onlymemory (ROM), removable media, or any other suitable local or remotememory component. In the illustrated embodiment, memory 120 includes atleast auction log 130 (described in more detail in FIG. 2), contractfiles 135, and account files 140, but may include any other suitabledata. At a high level, auction log 130 is any file that stores anyappropriate audit information involving bets 150 and the processingthereof.

Contract files 135 comprise logical descriptions (or data structures) ofcontracts for settling accounts between at least two wagering facilities102. More specifically, contract files 135 includes contract parametersand identifiers of wagering facilities 102. Contract parameters maycomprise any logic, rules, algorithms, or data operable to be processedby system 100 to determine the appropriate settlement between therespective facilities 102. For example, one contract parameter maycomprise a simulcast fee charged by a first wagering facility 102hosting the wagering event to a second wagering facility 102. Contractfiles 135 may be arranged in any suitable format and stored in anyphysical or logical data storage operable to be defined, processed, orretrieved by externally implemented code. Contract files 135 may alsocomprise one or a plurality of tables or files stored on one server 110or across a plurality of servers 110. Moreover, contract files 135 maybe stored as local or remote files without departing from the scope ofthis disclosure.

Account files 140 comprises logical descriptions (or data structures) ofaccounts for wagering facilities 102. For example, each wageringfacility 102 may be associated with one or more accounts represented inaccount files 140. Account files 140 may be arranged in any suitableformat and stored in any physical or logical data storage operable to bedefined, processed, or retrieved by externally implemented code. Accountfiles 140 may also comprise a plurality of tables or files stored on oneserver 110 or across a plurality of servers 110. Moreover, account files140 may be local or remote without departing from the scope of thisdisclosure.

Server 110 also includes processor 125. Processor 125 executesinstructions and manipulates data to perform the operations of server110 such as, for example, a central processing unit (CPU). Although FIG.1 illustrates a single processor 125 in server 110, multiple processors125 may be used according to particular needs, and any reference toprocessor 125 is meant to include multiple processors 125 whereapplicable. In certain embodiments, processor 125 executes settlementengine 145 implementing any suitable process using any appropriatelogic, rules, or algorithms. Settlement engine 145 could include anysoftware, firmware, or combination thereof operable to audit bets 150and at least partially settle accounts between wagering facilities 102.Settlement engine 145 may be further operable to encrypt or decryptcommunications such as, for example, bets 150 or audit information.

In one aspect of operation, a first wagering facility 102 hosts awagering event, such as a horse race, dog race, and jai alai. Firstfacility 102 automatically computes the odds for the participants in theevent and communicates these odds to at least a subset of non-hostwagering facilities 102. The term “automatically,” as used herein,generally means that the appropriate processing is substantiallyperformed by at least part of pari-mutuel system 100. It should beunderstood that “automatically” further contemplates any suitable useror bettor interaction with pari-mutuel system 100 without departing fromthe scope of this disclosure. A second one of the wagering facilities102 receives a bet 150 on the wagering event from a bettor, often atbetting terminal 103. Second wagering facility 102 transmits electronicbet 150 to first wagering facility 102 through hub 106 and network 108.As described above, this transmission may occur substantially inreal-time and on a bet-by-bet basis. During transmission, clearinghouse106 captures audit information on bet 150 and stores the capturedinformation in audit log 130.

For example, a bettor places a $100.00 bet 150 on a particular horserace hosted by the first wagering facility 102. In this example, bet 150is placed at a simulcast facility 102 such as a second wagering facility102. This $100.00 bet 150 is transmitted in real-time to the firstwagering facility 102. Clearinghouse 106 captures audit information fromnetwork 108 such that audit log 130 may include a transactionidentifier, an identifier of the first wagering facility, an identifierof the second wagering facility, a terminal ID, an identifier of thewagering event, the bet (e.g., a win bet on horse #3), an amount of thebet, a timestamp, a bettor ID (when available), and a hub. Further, atany appropriate time, clearinghouse 106 deducts a take-out or commissionassociated with the second facility 102 (e.g., 15%) from the bet amount,resulting in $85.00. In this case, the deducted $15.00 belongs to secondwagering facility 102 for initiating bet 150.

Once first wagering facility 102 receives bet 150, first facility 102recalculates the odds on the particular event specified by bet 150.According to certain embodiments, first facility 102 identifies at leasta subset of one or more stored bets 150 that are associated with theparticular event. First wagering facility 102 then recalculates the oddsin substantially real-time based on the identified subset of stored bets150 and received bet 150. In certain embodiments, if a second bet 150 isreceived within a predetermined period of time after first bet 150 isreceived (e.g., between 0 and 15 seconds), then first wagering facilitymay recalculate based on first and second bets 150. Once recalculated,first facility 102 automatically transmits the odds to at least thesecond wagering facility 102 via network 108. First facility 102 mayalso present the recalculated odds to the betting public at hostfacility 102. In one embodiment, wagering facility 102 recalculates theodds dynamically and in real-time upon receiving bet 150. In otherembodiments, facility 102 recalculates the odds at particular intervalsof time, but generally no later than the commencement of the particularevent such as the horse race.

This near-immediate receipt of bets 150 from any non-host facilities 102and recalculation and transmission of odds based on individual bets 150may continue until first wagering facility 102 determines that bettingshould stop. In one embodiment, first facility 102 may itself refusebets 150 already communicated from other facilities 102 such as, forexample, through an internal “stop bet” command 155. For example, uponcommencement of the event or a predetermined period of time prior to thecommencement of the event, host facility 102 may generate a “stop bet”command 155 signifying that no subsequent bets 150 will be accepted. Ifhost facility 102 then receives bets 150, such as from other wageringfacilities 102 via network 108, then host wagering facility denies bet150.

In another embodiment, first facility 102 may generate and communicate a“stop bet” command 155 to network 108 based on the commencement of theparticular event. The “stop bet” command 155 generally tells network 108to refuse any future bets 150 from any of the non-host wageringfacilities. In yet another embodiment, first facility 102 maycommunicate the “stop bet” command 155 to second non-hosting facilities102. Occasionally, second wagering facility 102 may transmit a receivedbet 150 prior to receiving the “stop bet” command 155. In this case,first wagering facility 102 may first determine or verify that bet 150was actually communicated prior to issuance of the “stop bet” command155. If so, then first wagering facility 102 may accept bet 150 andperform the recalculation of the odds for the event. If first facility102 determines that bet 150 was not received prior to issuance of the“stop bet” command 155, then first wagering facility 102 may refuse bet150. Once the event is completed, first wagering facility 102 transmitsthe results to clearinghouse 106 and appropriate non-host wageringfacilities 102.

At any predetermined time (such as once a week), clearinghouse 106processes the results of one or more events to settle the accounts ofthe various facilities 102 involved in the events or betting thereon. Inone embodiment, processor 125 may select a first subset of bets fromaudit log 130 based on the first (or host) wagering facility 102 and asecond one of the non-host wagering facilities 102. Next, processor 125identifies the appropriate contract parameters from contract files 135based on the two facilities 102. Using these parameters, processor 125generates a settlement, or a calculated transfer of funds, between firstand second facility 102. Next, processor 125 may debit or credit theaccounts of each facility 102 in account files 140 using ElectronicFunds Transfer (EFT) techniques. When appropriate, clearinghouse 106 maycommunicate the settlement, now reflected in account files 140, to oneor more banks to initiate the transfer of funds. Clearinghouse 106 maycontinue this processing until the accounts between the first wageringfacility 102 and each non-host facility 102, which transmitted bets 150,are settled. Clearinghouse 106 may communicate the results of thesesettlements to the appropriate wagering facilities 102.

Returning to the example $100.00 bet on the particular horse, firstwagering facility 102 may transmit a message to clearinghouse 106 to theeffect that bet 150 lost. Clearinghouse 106 collects i) the appropriatecontract parameters from contracts files 135 between first and secondwagering facility 102; and ii) the audit information associated withexemplary bet 150. Based on the contract parameters, clearinghouse 106may determine that there is a simulcast fee of 3%, or $3.00 of theexample bet amount ($100.00), due to first wagering facility 102.Accordingly, clearinghouse 106 calculates that second wagering facility102 owes first wagering facility 102 $88.00, or $100.00 (originalbet)−15.00 (take-out)+3.00 (simulcast fee), leaving $12.00 of the betamount in the account of second wagering facility 102. Clearinghouse 106then updates the account of each facility 102 in account files 140and/or facilitates an EFT between the facilities 102 based on thedetermined settlement.

In the alternative, first wagering facility 102 may transmit a messageto clearinghouse 106 to the effect that bet 150 won. Clearinghouse 106collects i) the appropriate contract parameters from contracts files 135between first and second wagering facility 102; and ii) the auditinformation associated with exemplary bet 150. Based on the contractparameters, clearinghouse 106 may determine that there is a simulcastfee of 3%, or $3.00 of the example bet amount, due to first wageringfacility 102. Accordingly, clearinghouse 106 calculates that secondwagering facility 102 owes first wagering facility 102 $88.00, or$100.00 (original bet)−15.00 (take-out)+3.00 (simulcast fee). But, sincebet 150 won, clearinghouse 106 further determines that first wageringfacility 102 owes the winning amount (e.g. $400.00 on 3-1 odds) tosecond wagering facility 102. Accordingly, clearinghouse 106 determinesthat first wagering facility 102 owes second wagering facility 102$312.00 ($400.00−88.00). Clearinghouse 106 then updates the account ofeach facility 102 in account files 140 and/or facilitates an EFT betweenthe facilities 102 based on the determined settlement.

FIG. 2 illustrates one example of audit log 130 in accordance with oneembodiment of system 100. In general, system 100 uses audit log 130 tosecurely store and process audit information of bets 150 traversingsystem 100. This audit information may allow system 100 to ensuresecurity and accuracy of bets 150, quickly respond to requests fromagencies, locate and correct system issues, or other appropriateprocesses. In the illustrated embodiment, audit log 130 is amulti-dimensional data structure that includes at least one auditrecord. But audit log 130 may be arranged in any appropriate format. Inthis example, each audit record includes data, pointers, references, orany other identifier of a transaction, first wagering facility 102,second wagering facility 102, a terminal 103, the wagering event, thebet (e.g., a win on horses #2), an amount of the bet, a timestamp, abettor (when available), and a hub 106. It will be understood that eachaudit record may include none, some, or all of the example data. In oneembodiment, each audit record may include links, foreign keys, orpointers to another table. The audit records illustrated in audit log130 are merely exemplary and system 100 contemplates any other suitableaudit component to allow for suitable auditing of bets 150. Moreover,audit log 130 may be separated into multiple tables or files withoutdeparting from the scope of the invention.

FIGS. 3 and 4 are flowcharts illustrating example methods 300 and 350,respectively, for various aspects of electronic, real-time processing ofpari-mutuel wagering. First, FIG. 3 illustrates method 300, whichgenerally describes the communication and processing of bets betweenfacilities 102 via the high-speed pari-mutuel network 108 in accordancewith one embodiment of the present invention. Second, FIG. 4 illustratesmethod 350, which generally describes the monitoring of bets betweenfacilities 102 with access to pari-mutuel system 100 in accordance withone embodiment of the present invention. The following descriptionsfocus on the operation of particular components of pari-mutuel system100 in performing methods 300 and 350. But pari-mutuel system 100contemplates using any appropriate combination and arrangement oflogical elements to implement some or all of the described functionalityand techniques.

At a high level, method 300 includes the receiving and transmission ofindividual bets 150, on an event hosted by first wagering facility 102,in real-time and the real-time recalculation of odds based on each bet150. Method 300 begins at step 302, where second wagering facility 102receives a first bet 150 on the event hosted by first wagering facility102. As described above, first bet 150 may be manually received at abetting window, electronically received from a betting terminal 103, orreceived using any other appropriate technique. After any appropriateprocessing, second wagering facility 102 transmits bet 150 to firstwagering facility 102 through the appropriate hub 106 in network 108.First wagering facility 102 then dynamically recalculates the odds basedon the received bet 150 and any other bets 150 in memory at step 308.Next, at step 310, second wagering facility 102 displays the new odds tocurrent attendees or bettors on the event. First wagering facility 102then transmits, often in real-time, the recalculated odds to one or morewagering facilities 102, which are not hosting the event, via network108.

At step 312, second wagering facility 102 receives the recalculated oddsfrom first facility 102. Next, second wagering facility 102 receivesanother bet 150 on the event at step 314. At decisional step 316, secondwagering facility 102 determines if first wagering facility 102 hasstopped accepting bets 150 for the particular event. One way firstfacility 102 may indicate this is by issuing an internal “stop bet”command 155 and issuing “bet is rejected” message to facilities 102transmitting subsequent bids 150. The “stop bet” command 155 may alsohave been communicated to network 108, one or more hubs 106, and/or oneor more wagering facilities 102. In other words, second wageringfacility 102 may receive an error message from first wagering facility102 based on an attempted transmission of bet 150, may determine if the“stop bet” command 155 was communicated by querying hub 106, or throughany other suitable technique. If betting was not stopped by firstwagering facility 102, then processing returns to step 304. Otherwise,second wagering facility 102 communicates the “bet is rejected” messageto the respective bettor and refuses bet 150. This “bet is rejected”message may be verbal, electronic, or in any other appropriate format.

Once the wagering event is over, first wagering facility 102 identifiesthe winner of the wagering event at step 320. Then, based upon theresults of the event, first wagering facility 102 performs pari-mutuelprocessing to determine results information at step 322. In oneembodiment, the pari-mutuel processing may include aggregating all bets150 involving the particular event and determining the distribution ofat least a portion of bets 150 among the winning bettors. Of course, anypari-mutuel processing may be used. At step 324, second wageringfacility 102 receives the determined results information from firstwagering facility 102 via network 108. Second wagering facility 102 maydistribute the expected winnings to the winning bettors and haveaccounts automatically settled by clearinghouse 106, as described inmore detail in FIG. 5.

Generally, method 350 includes clearinghouse 106 capturing auditinformation on bets 150 traversing network 108. Method 350 begins atstep 352, where clearinghouse 106 monitors bets 150 transmitted betweenfirst and second facilities 102 across network 108. At step 354,clearinghouse 106 captures audit information of bet 150 using anysuitable technique. For example, clearinghouse 106 may capture thedesired information by parsing and scanning the electronic bet 150,receiving a copy of bet 150 from facility 102, or through any othertechnique. Once captured, clearinghouse 106 stores the audit informationin audit log 130 at step 356. At any appropriate time, clearinghouse 106receives results for the particular event, which occurred at firstwagering facility 102, at step 358. Further, although method 350 isillustrated as continuing on to step 358, it should be understood thatclearinghouse 106 may continue to monitor network 108 by performingsteps 352-356 in parallel with step 358.

FIG. 5 illustrates an example method 400 for determining settlementsbetween wagering facilities 102 with access to the network 108 inaccordance with one embodiment of the present invention. Generally,clearinghouse 106 processes all unprocessed bets 150 using the capturedaudit information to systematically settle accounts between appropriatefacilities 102.

Method 400 begins at step 405, where clearinghouse 106 identifies afirst wagering facility 102. Clearinghouse 106 then selects auditinformation, captured from the monitored bets 150, involving theidentified wagering facility 102 as the host facility 102 at step 410.Next, at step 415, clearinghouse 106 identifies a first non-hostfacility 102 based on the selected audit information. Clearinghouse 106then selects a subset of the audit information involving the identifiednon-host facility 102 at step 420. Next, clearinghouse 106 identifies anelectronic contract, from contract files 135, between the identifiedhost and non-host wagering facilities 102 at step 425. For example,server 110 may select the appropriate contract parameters, such as thesimulcast fee, from contract files 135 that are stored in memory 120.Clearinghouse 106 then processes the selected subset of auditinformation based on the identified contract parameters and results toproduce a settlement of accounts between the two facilities 102 at step430. At decisional step 435, clearinghouse 106 determines if there areunprocessed non-host facilities 102 remaining in the audit informationselected at step 410. If there are, then clearinghouse 106 identifiesthe next non-host facility 102 at step 440 and processing returns tostep 420.

If all the particular non-host facilities 102 have been processed forthe selected audit information, then at step 445, clearinghouse 106selects alternative audited information, captured from the monitoredbets 150, involving the wagering facility 102 (identified in step 405)as the non-host facility 102. Next, at step 450, clearinghouse 106identifies a first host facility 102 based on the selected auditinformation. Clearinghouse 106 then selects a subset of the auditinformation involving the identified host facility 102 at step 455.Next, clearinghouse 106 identifies an electronic contract, from contractfiles 135, between the identified host and non-host wagering facilities102 at step 460. Clearinghouse 106 then processes the selected subset ofaudit information based on the identified contract parameters andresults to produce a settlement of accounts between the two facilities102 at step 465. At decisional step 470, clearinghouse 106 determines ifthere are unprocessed host facilities 102 remaining in the auditinformation selected at step 445. If there are, then clearinghouse 106identifies the next non-host facility 102 at step 475 and processingreturns to step 455. Otherwise, at decisional step 480, clearinghouse106 determines if there are unprocessed facilities 102. If there are,clearinghouse 106 identifies the next facility 102 at step 485 andprocessing returns to step 410.

Otherwise, clearinghouse 106 determines that accounts have been settledbetween the plurality of facilities 102 of system 100 and processingends. It should be understood that clearinghouse 106 may useintelligence to ensure that facilities are not inefficiently processedor may aggregate settlements determined at steps 430 and 465 to generatea single settlement between the respective facilities 102. In certainembodiments, clearinghouse 106 may facilitate a funds transfer betweenthe facilities 102 through an EFT process for banks at any appropriatetime. Also, clearinghouse 106 may communicate settlement 160 to therespective non-host facility 102 and the host wagering facility 102.

The preceding flowcharts and accompanying description illustrate onlyexemplary methods 300, 350, and 400. Pari-mutuel system 100 contemplatesusing any suitable technique for performing these and other tasks.Accordingly, many of the steps in these flowcharts may take placesimultaneously and/or in different orders than as shown. Moreover,pari-mutuel system 100 may use methods with additional steps, fewersteps, and/or different steps, so long as the methods remainappropriate.

Although this disclosure has been described in terms of certainembodiments and generally associated methods, alterations andpermutations of these embodiments and methods will be apparent to thoseskilled in the art. Accordingly, the above description of exampleembodiments does not define or constrain this disclosure. Other changes,substitutions, and alterations are also possible without departing fromthe spirit and scope of this disclosure.

1. A wagering system, comprising: a first wagering facility communicablycoupled with a network and operable to: receive a bet on a wageringevent hosted by a second wagering facility; and transmit the bet to thesecond wagering facility via the network; and a clearinghousecommunicably coupled with the network and operable to capture auditinformation associated with the bet from the network. 10
 2. The systemof claim 1, the clearinghouse further operable to store one or morecontract parameters between the first and second wagering facilities. 3.The system of claim 2, the clearinghouse further operable to: receive aresult of the wagering event; and determine a settlement between thefirst and second wagering facilities based at least in part upon theresult, the one or more contract parameters, and at least a portion ofthe audit information associated with the bet.
 4. The system of claim 1,the system further comprising a third wagering facility operable to:receive a second bet on the wagering event hosted by the second wageringfacility; and transmit the second bet to the second wagering facilityvia the network; and the clearinghouse further operable to capture auditinformation associated with the second bet from the network.
 5. Thesystem of claim 4, the clearinghouse further operable to: store one ormore second contract parameters between the third and second wageringfacilities; and determine a second settlement between the third andsecond wagering facilities based at least in part upon the result, theone or more second contract parameters, and the audit informationassociated with the second bet.
 6. The system of claim 1, the betcomprising a first bet and the first wagering facility further operableto: receive a second bet on the wagering event hosted by the secondwagering facility; transmit the second bet to the second wageringfacility via the network; and the clearinghouse further operable tocapture audit information associated with the second bet from thenetwork.
 7. The system of claim 1, the network comprising a plurality ofhubs, wherein one of the plurality of hubs is associated with the firstwagering facility and a second of the plurality of hubs is associatedwith the second wagering facility.
 8. The system of claim 7, theclearinghouse comprising one of the plurality of hubs.
 9. The system ofclaim 1, the first wagering facility operable to receive the bet from atleast one of a local betting terminal or a third wagering facility. 10.The system of claim 1, wherein the contract parameters comprise at leasta simulcast fee owed by the first wagering facility to the secondwagering facility.
 11. The system of claim 1, wherein the auditinformation comprises one or more of: a transaction identifier; anidentifier of the first wagering facility; an identifier of the secondwagering facility; a terminal identifier; an identifier of the wageringevent; an amount of the bet; and a time stamp.
 12. The system of claim6, wherein the first wagering facility transmits the first betseparately from the second bet.
 13. The system of claim 1, wherein thewagering event comprises a horse race and the first wagering facilitycomprises a horse track and the second wagering facility comprises anoff-track betting parlor.
 14. The system of claim 1, wherein the bettransmitted by the first wagering facility is encrypted and theclearinghouse is further operable to decrypt the bet to capture theaudit information.
 15. The system of claim 3, wherein the clearinghouseis further operable to store a first account for the first wageringfacility, to store a second account for the second wagering facility,and to transfer funds between the first and second accounts based atleast in part upon the settlement determination.
 16. The system of claim3, wherein the clearinghouse is further operable to initiate anElectronic Funds Transfer (EFT) transaction based at least in part uponthe settlement determination.
 17. The system of claim 1, the firstwagering facility further operable to transmit the bet to the secondwagering facility in real time in response to receiving the bet.
 18. Thesystem of claim 1, the clearinghouse further operable to store the auditinformation in an audit log.
 19. The system of claim 1, wherein theclearinghouse operable to capture the audit information associated withthe bet from the network comprises the clearinghouse operable to monitornetwork traffic.
 20. The system of claim 1, wherein the clearinghouseoperable to capture the audit information associated with the bet fromthe network comprises the clearinghouse operable to receive a copy ofthe bet from the first wagering facility.
 21. A clearinghousecommunicably coupled to a first wagering facility and a second wageringfacility using a network, the clearinghouse comprising: a memoryoperable to store one or more contract parameters between the firstwagering facility and the second wagering facility; and a system coupledto the memory and operable to: capture audit information associated witha bet placed at the first wagering facility, wherein the bet isassociated with a wagering event hosted by the second wagering facility;receive a result of the wagering event; and determine a settlementbetween the first and second wagering facilities based at least in partupon the result, the one or more contract parameters, and the auditinformation associated with the bet.
 22. The clearinghouse of claim 21,wherein: the memory is further operable to store a first accountassociated with the first wagering facility and a second accountassociated with a second wagering facility; and the processor is furtheroperable to transfer funds between the first and second accounts basedat least in part upon the settlement determination.
 23. Theclearinghouse of claim 21, wherein the audit information comprises oneor more of: a transaction identifier; an identifier of the firstwagering facility; an identifier of the second wagering facility; aterminal identifier; an identifier of the wagering event; an amount ofthe bet; and a time stamp.
 24. The clearinghouse of claim 21, whereinthe wagering event comprises a horse race, the second wagering facilitycomprises a horse track, and the first wagering facility comprises oneof a horse track and an off-track betting parlor.
 25. The clearinghouseof claim 21, wherein the contract parameters comprise at least asimulcast fee owed by the first wagering facility to the second wageringfacility.
 26. A method for settling accounts between a first wageringfacility and a second wagering facility, the method comprising: storingone or more contract parameters between the first wagering facility andthe second wagering facility; capturing audit information from a networkthat couples the first wagering facility to the second wageringfacility, wherein the audit information is associated with a bet placedat the first wagering facility and the bet is associated with a wageringevent hosted by the second wagering facility; receiving a result of thewagering event; and determining a settlement between the first andsecond wagering facilities based at least in part upon the result, theone or more contract parameters, and the audit information associatedwith the bet.
 27. The method of claim 26, further comprising: storing afirst account associated with the first wagering facility; storing asecond account associated with a second wagering facility; andtransferring funds between the first and second accounts based at leastin part upon the settlement determination.
 28. The method of claim 26,further comprising initiating an Electronic Funds Transfer (EFT)transaction based at least in part upon the settlement determination.29. The method of claim 26, wherein the audit information comprises oneor more of: a transaction identifier; an identifier of the firstwagering facility; an identifier of the second wagering facility; aterminal identifier; an identifier of the wagering event; an amount ofthe bet; and a time stamp.
 30. The method of claim 26, wherein thewagering event comprises a horse race, the second wagering facilitycomprises a horse track, and the first wagering facility comprises oneof a horse track and an off-track betting parlor.
 31. The method ofclaim 26, the contract parameters comprising at least a simulcast feeowed by the first wagering facility to the second wagering facility.